But after the Victorian government confirmed the state's seven-day circuit-breaker lockdown will not end at 11.59pm on Thursday as planned, accommodation providers are bracing for another big hit.

COVID-19 restrictions should ease in regional areas after 11.59pm on Thursday, but with many people from metro Melbourne expected to flock to western Victoria over the Queen's Birthday weekend, the changed rules have put the pressure back on accommodation businesses.

Halls Gap's Pinnacle Holiday Lodge operator Mathew D'Rozario said more government support will be needed to help his business survive yet another heavy blow.

"We had very good bookings before, but because of the restrictions they have cancelled it," he said.

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"It is hard to judge whether locals might come and stay with us over the long weekend.

"Friday and Saturday night was fully booked, but we cancelled every booking and only seven people have called us back to confirm they are coming."

Mr D'Rozario said the Queen's Birthday weekend is usually a busy and important time for his business.

"The long weekend we would have been at 100 per cent, but now we are at 15 per cent and fingers crossed we can get some more people to stay," he said.

"My monthly rent is $17,000, and last weekend we were fully booked, so about $10,000, but the government is only offering $2,500.

"That's not going to cover one week's rent, and on top of that you have to pay utilities.

"We are not even getting 15 per cent of our occupancy, so this has affected our business heavily.

"$2,500 is nothing and it (the lockdown extension) will have a big, big impact on our business."

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Grampians Tourism chief executive Marc Sleeman said snap lockdowns might affect people's confidence when booking holiday's, but he also noted that the Grampians may actually benefit in the long term.

"I think it's definitely going to make people more hesitant, but I think it's going to work in our favour," he said.

"I think it's going to get people thinking about travelling intrastate when they normally would have headed north for winter, so I think it might have a positive economic flow-on for our destination."

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